Due Diligence

Due Diligence is the due care taken when a purchase or sale of company shares, real estate or flotation on the stock market is verified prior to acquisition of the real estate or company shares or to flotation on the stock market.

This process entails that we analyse the strengths and weaknesses of the subject matter in question as well as the risks involved in its purchase. The report focuses on the balance sheets, personnel and material resources, strategic positioning, legal and financial risks as well as environmental pollution issues.

This procedure enables us to provide our clients with important assistance in their ability to make correct decisions.

Reporting to foreign corporations

The individuality of each client has led us to customise individual reporting procedures with which we support our clients’ subsidiaries and/or branch offices in Germany. We prepare and refine precise information regarding the economic relations according to the instructions of the foreign corporations. This involves that we delve deep into their processes in order to meet all and any requirements at any time.

International taxation

Europe and the World continue to move closer together. In the context of international taxation, we provide consulting as to which fiscal effects must be observed in the event of cross-border economic activities. Within the scope of European collaboration in addition to transatlantic and transpacific business, our team has extensive experience in this field and constantly remains up-to-date with regard to international legislation thanks to continued training.

Double taxation agreement

Double taxation agreements regulate under international law the extent to which the member states are entitled to receive taxes for the revenue generated in their territory. Its aim is to avoid natural or legal persons who earn income in both states being subject to double taxation, i.e. taxation in both states.

In our capacity as a German tax consulting firm, we are at the forefront of progress at all times in order to cease any possible double taxation burdens at an early stage and to portray these to our clients in accordance with the law.

International accounting (US-GAAP, IFRS)

The multitude of national legislation concerning the preparation of annual and corporate financial statements does not necessarily enable comparisons to be made on an international level. Upon request, we can base our bookkeeping on international standards for accounting (US-GAAP and IFRS) resulting there from. The IFRS are stipulated in many countries, at least for capital market driven companies. 

Deferred taxes on individual and consolidated financial statements

Deferred taxes, i.e. hidden tax burdens, arise as a result of differences on the inclusion and the assessment of assets between the tax balance sheet and the commercial balance sheet. In view of the fact that it is probable that they will diminish in the course of business years to come, this will result in differences arising between the tax and commercial balance sheet profits in the future. The Rinke Treuhand team is available for measures concerning tax planning and its correct portrayal in the international context.

Internal controlling and risk management systems

Risk management comprises all and any measures with effect to systematic identification, analysis, assessment, supervision and controlling of risks. Risk management, be it with or without order, takes place in all walks of life involving persons or groups of people, in industry, economy, health, politics and traffic where risks are being taken and are recognized as such.

We offer companies the service of implementing internal controlling and risk management systems. Benefiting from many years of experience in auditing, we are able to identify difficult conditions and can find customised solutions for your company – woven into international requirements.

Transfer of functions

Transfer of functions means that operational functions that have so far been carried out inland are transferred to a closely affiliated person or persons abroad. The German legislation for tax purposes considers that an entrepreneur will only transfer parts of his operational business processes that are profitable to a third party if the latter compensated him by payment of an adequate remuneration for having relinquished such profit-making opportunities.

This is a further juncture where it is necessary to find an adequate solution that takes all optimum situations in terms of tax into consideration for tax portrayal purposes.

International transfer prices

It is a daily occurrence within a corporation that relations exist between individual companies. It is not necessary to demand consideration within a corporation in relation to the consolidated earnings.

However, in order to be able to represent the internal business-management analysis, international prices are becoming more significant.

We can provide assistance to our clients to establish and offset appropriate pricing in order to be able to determine the “correct” profit generated by each unit for each group company or for each company sector.

Cross-border employee taxation (expatriates)

The term expatriate is used in the economy to describe a qualified person who is temporarily stationed at a foreign subsidiary or branch office of the international company by whom he is employed.

These specialists contribute their labour skills for a certain amount of time in Germany without the wish to remain here on a permanent basis. In this respect, we can advise the private individual in terms of their income tax situation in Germany, assume formalities and assist in expatriates being able to concentrate on their work in the company.